Manufacturing Income Statement, Statement of Cost of Goods Manufactured Several items are omitted from the income statement and cost of goods manufactured statement data for two different compani- for the month of December: On Off Company Company Materials inventory, December 1 $57,610 $74,320 Materials inventory, December 31 (a) 83,980 Materials purchased 146,330 (a) Cost of direct materials used in production 154,390 (b) Direct labor 217,190 167,220 Factory overhead 67,400 83,240 Total manufacturing costs incurred in December (b) 480,850 Total manufacturing costs 549,590 549,590 Work in process inventory, December 1 110,610 179,110 Work in process inventory, December 31 93,330 (c) Cost of goods manufactured (c) 476,390 Finished goods inventory, December 1 97,360 83,240 Finished goods inventory, DecembEr 31 101,970 ((1) Sales 849,170 743,200 Cost of goods sold (d) 480,850 Gross profit (e) (e) Operating expenses ' 110,610 (f) Net income (f) 164,990 Required: 1. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers. Letter On Company Off Company as J a. $ 49,550 J b $ $ 438.980 c. $ $ d. $ $ e. $ $ f. $ 35 Feedback Check My Work .4 a. The cost of direct materials used in production includes the beginning materials inventory plus purchases, less the ending materials inventory. b. Total manufacturing costs incurred during December include direct materials, direct labor, and factory overhead. c. The cost of goods manufactured is beginning work in process plus total manufacturing costs less the ending work in process d. The cost of goods sold is the beginning finished goods plus the cost of goods manufactured, less the ending finished goods. e. Sales minus cost of goods sold equals gross profit. f. Gross profit minus operating expenses equals net income. Use similar relationships from On Company to find the missing amounts for the Off Company items (a) through (f). 2. Prepare On Company's statement of cost of goods manufactured for December. On Company Statement of Cost of Goods Manufactured For the Month Ended December 31 Costs Type Amount Amount Amount Work in process inventory, December 1 V $ Direct materials: $ Materials inventory, December 1 V Purchases Cost of materials available for use V Materials inventory, December 31" $ Cost of direct materials used in production Direct labor Factory overhead - Total manufacturing costs incurred during December Total manufacturing costs Work in process inventory, December 31 V Cost of goods manufactured $ = FeedbackCheck My Work 2. The cost of goods manufactured is the beginning work in process plus the cost of direct materials used in production plus direct labor and factory overhead, less the ending work in process. 3. Prepare On Company's income statement for December. On Company Income Statement For the Month Ended December 31 Line Item Description Amount Amount V $ Sales Cost of goods sold: Finished goods inventory, December 1 $ Cost of goods manufactured V Cost of finished goods available for sale" $ Finished goods inventory, December 31 Cost of goods sold" Gross profit V Operating expenses V $ Net income = Feedback Check My Work 3. Sales minus cost of goods sold equals gross profit. Cost of goods sold is equal to beginning Finished Goods plus Cost of Goods Manufactured less ending Finished Goods. Gross profit minus operating expenses equals net income. Feedback Check My Work rtially cor